1. The document provides an overview of a Vietnamese company that imports steel beams and other construction materials.
2. It details the company's history, financial performance from 2006-2010, import contracts and transaction exposures, hedging strategies and tools used to manage foreign exchange risk.
3. Key aspects of the company's hedging approach include using forward contracts, price adjustment clauses in sales contracts, and shortening payment periods to reduce outstanding payables.
- The document provides financial statements for Villa Alhambra of Coral Gables Condominium Association for the period ending August 31, 2012.
- As of August 31, 2012 the Association had total assets of $127,035 including current assets of $96,803 and restricted funds for reserves of $27,860.
- Current liabilities were minimal at $(11).
- Newmont Mining Corporation's President and CEO Richard O'Brien presented at the Bank of Montreal Metals and Mining Conference on February 27, 2012.
- In his presentation, O'Brien highlighted Newmont's growth potential through projects in the pipeline that could increase gold production by 35% to around 7 million ounces by 2017. He also noted potential to double copper production over the same period.
- O'Brien emphasized Newmont's strong financial position and competitive project returns across its portfolio.
Richard O'Brien, President and CEO of Newmont Mining Corporation, presented at the Bank of Montreal Metals and Mining Conference on February 27, 2012. In his presentation, O'Brien highlighted Newmont's strong operating performance in 2011, growth potential through 2022, competitive project returns, and significant exploration upside. Newmont is well positioned to potentially grow attributable gold production by 35% to around 7 million ounces by 2022 through projects in its pipeline. The company also has potential to double copper production over this period.
This document provides Richard O'Brien's presentation at the Bank of Montreal Metals and Mining Conference on February 27, 2012. The presentation highlights Newmont Mining Corporation's growth potential through 2017, competitive project returns, and exploration upside. It discusses Newmont's record 2011 financial results, leadership in key metrics like reserves and production per share, and outlook for 2012 of attributing gold production of 5.0-5.2 million ounces and copper production of 150-170 million pounds.
The document discusses Newmont Mining Corporation's growth strategy and financial performance. It highlights production growth potential to around 7 million ounces of gold by 2017 through its project pipeline. It also notes exploration upside with potential to add reserves equivalent to 90 million ounces of gold over the next decade. Finally, it provides updates on various projects in its portfolio such as Akyem, Conga, and Long Canyon.
The document summarizes Swedish household savings data for the fourth quarter of 2010. Key points include:
- Total household savings increased by 49 billion Swedish kronor in Q4 2010, with 30 billion allocated to premium pensions and 36 billion saved in bank deposits.
- Stock prices on the Stockholm exchange increased by 7.4% while housing prices decreased by 0.3%.
- Household borrowing increased by 1.5% in Q4 2010 and 7.4% over the past 12 months.
- The largest providers of household savings were Swedbank with a 14.4% market share, SEB with 12.2%, and Alecta with 9.8%.
The document summarizes questions and data from the Green Pearl Chicago Distressed Real Estate Summit in May 2010. It includes questions about justified value increases in the real estate market, opportunities to purchase distressed assets from lenders, the impact of maturing commercial mortgage backed securities, and the outlook for apartment and multifamily development. Charts show a rebound in apartment transaction volumes and significant maturities of multifamily loans from institutional lenders between 2010 to 2017. The presentation examines whether government agencies can replace reduced lending from other investor groups.
1) Swedbank has structurally low liquidity risk due to its asset quality, limited reliance on unsecured funding, large proportion of funding from the domestic Swedish market, and buffers to withstand stressed market conditions.
2) Swedbank benefits from a limited need for unsecured funding due to its deposit franchise and ability to access the Swedish covered bond market.
3) Swedbank has significantly reduced its risk levels since 2008 by decreasing its reliance on central bank funding and senior unsecured debt, and increasing its use of more secured funding like covered bonds and deposits.
- The document provides financial statements for Villa Alhambra of Coral Gables Condominium Association for the period ending August 31, 2012.
- As of August 31, 2012 the Association had total assets of $127,035 including current assets of $96,803 and restricted funds for reserves of $27,860.
- Current liabilities were minimal at $(11).
- Newmont Mining Corporation's President and CEO Richard O'Brien presented at the Bank of Montreal Metals and Mining Conference on February 27, 2012.
- In his presentation, O'Brien highlighted Newmont's growth potential through projects in the pipeline that could increase gold production by 35% to around 7 million ounces by 2017. He also noted potential to double copper production over the same period.
- O'Brien emphasized Newmont's strong financial position and competitive project returns across its portfolio.
Richard O'Brien, President and CEO of Newmont Mining Corporation, presented at the Bank of Montreal Metals and Mining Conference on February 27, 2012. In his presentation, O'Brien highlighted Newmont's strong operating performance in 2011, growth potential through 2022, competitive project returns, and significant exploration upside. Newmont is well positioned to potentially grow attributable gold production by 35% to around 7 million ounces by 2022 through projects in its pipeline. The company also has potential to double copper production over this period.
This document provides Richard O'Brien's presentation at the Bank of Montreal Metals and Mining Conference on February 27, 2012. The presentation highlights Newmont Mining Corporation's growth potential through 2017, competitive project returns, and exploration upside. It discusses Newmont's record 2011 financial results, leadership in key metrics like reserves and production per share, and outlook for 2012 of attributing gold production of 5.0-5.2 million ounces and copper production of 150-170 million pounds.
The document discusses Newmont Mining Corporation's growth strategy and financial performance. It highlights production growth potential to around 7 million ounces of gold by 2017 through its project pipeline. It also notes exploration upside with potential to add reserves equivalent to 90 million ounces of gold over the next decade. Finally, it provides updates on various projects in its portfolio such as Akyem, Conga, and Long Canyon.
The document summarizes Swedish household savings data for the fourth quarter of 2010. Key points include:
- Total household savings increased by 49 billion Swedish kronor in Q4 2010, with 30 billion allocated to premium pensions and 36 billion saved in bank deposits.
- Stock prices on the Stockholm exchange increased by 7.4% while housing prices decreased by 0.3%.
- Household borrowing increased by 1.5% in Q4 2010 and 7.4% over the past 12 months.
- The largest providers of household savings were Swedbank with a 14.4% market share, SEB with 12.2%, and Alecta with 9.8%.
The document summarizes questions and data from the Green Pearl Chicago Distressed Real Estate Summit in May 2010. It includes questions about justified value increases in the real estate market, opportunities to purchase distressed assets from lenders, the impact of maturing commercial mortgage backed securities, and the outlook for apartment and multifamily development. Charts show a rebound in apartment transaction volumes and significant maturities of multifamily loans from institutional lenders between 2010 to 2017. The presentation examines whether government agencies can replace reduced lending from other investor groups.
1) Swedbank has structurally low liquidity risk due to its asset quality, limited reliance on unsecured funding, large proportion of funding from the domestic Swedish market, and buffers to withstand stressed market conditions.
2) Swedbank benefits from a limited need for unsecured funding due to its deposit franchise and ability to access the Swedish covered bond market.
3) Swedbank has significantly reduced its risk levels since 2008 by decreasing its reliance on central bank funding and senior unsecured debt, and increasing its use of more secured funding like covered bonds and deposits.
Institutional Cash Distributors (ICD) was formed in 2003 by three veteran institutional sales professionals from Deutsche Bank and JP Morgan Chase to provide investment services to corporate treasury clients. ICD services over $20 billion in investments for more than 200 institutional clients. ICD offers a one account solution that provides access to over 150 funds across 35 fund families through a single application, allows settling of multiple fund trades with one wire, and provides a consolidated statement. ICD acts as an independent provider and offers unbiased advice based on client guidelines.
Interim report 3 2010, Media and analyst presentation, Nordea BankNordea Bank
Nordea reported strong results for the third quarter of 2010. Net interest income was up 5% and net fee and commission income was up 20% compared to the third quarter of 2009. Total income reached a new record level, up 9% compared to the same period last year. Operating profit increased 15% year-over-year to 960 million euros. Nordea maintained a strong capital position, with a core tier 1 capital ratio of 10.4% and remains well positioned to comply with upcoming Basel III regulations.
The document summarizes Richard O'Brien's presentation at the 2012 Denver Gold Forum on September 11, 2012. It outlines Newmont Mining Corporation's strategy to achieve profitable growth through 6-7 million ounces of annual gold production by 2017 while maintaining disciplined returns. It also highlights Newmont's exploration potential of 90 million ounces of gold reserves and 9 billion pounds of copper reserves by 2020. Additionally, the summary discusses Newmont's strong balance sheet, investment grade credit ratings, and commitment to returning capital to shareholders through an industry-leading dividend now tied to the trailing average gold price.
Presentation Bo Lundgren Tokyo 7-8 maj 2012Riksgälden
Sweden experienced a banking crisis in the early 1990s but implemented reforms that stabilized its economy and reduced government debt. Reforms to monetary and fiscal policy, pensions, and deregulation of product markets created stability. Household debt is moderate and Sweden has a budget surplus target of 1% of GDP. The central bank focuses on price stability. Gross borrowing in capital markets is growing but net borrowing requirements are negative, indicating budget surpluses.
The document summarizes Swedish household savings data for the second quarter of 2010. It finds that total household savings increased by 46 billion kronor during the quarter due to 34 billion in new bank deposits and 14 billion in insurance savings. It also notes a 3.7% decrease in the Stockholm stock exchange index and a 3.3% increase in housing prices during the period. Household borrowing increased by 2.2% for the quarter and 8.4% over the past year.
Scania Interim Report January-September 2011Scania Group
Scania reported higher earnings for the first nine months of 2011 compared to the same period in 2010, with operating income rising to SEK 9,657m and earnings per share rising to SEK 9.11. However, demand for vehicles decelerated in late Q3, particularly in Southern Europe and the Middle East. As a result, Scania will reduce its daily global production rate by 10-15% starting in November to better match demand. Overall, net sales increased 16% to SEK 64,795m for the first nine months, with order bookings up 16% as well, though cash flow declined 54% over the same period.
1) The document outlines SEB Group's Q3 2008 results including highlights on asset quality, operations in the Baltics, and capitalization.
2) It shows that SEB had resilient underlying business performance in Q3 2008 but negative financial effects from the financial crisis.
3) The tables and charts present data on topics like income sources, credit exposure by sector and geography, property management portfolio, and asset quality for SEB and their key markets.
The document provides information about using a Pitchbook template for presentations. It describes characteristics of pitchbooks including dense layouts, simple graphics, and consistency across slides. It then provides instructions for customizing the template, including replacing the logo and modifying slide colors. Sample slides are shown for an annual report, market analysis, and business summary. The slides contain financial data, charts, and summaries.
The document is an exam paper for a Business Studies exam containing two case studies:
1. The Travelstop Hotel is facing cash flow problems and declining tourist numbers. It must decide whether to accept a large booking that may be slow to pay.
2. The Soup Makers produces three products at different stages of the product life cycle. It is developing a new product and has identified quality control issues. The case examines production, costs, and decisions around products.
- Credit Suisse Group reported net income of CHF 1,351 million for Q3 2004, down from CHF 1,457 million in Q2 2004. For the first nine months of 2004, net income was CHF 4,669 million.
- Most banking segments saw lower client activity and revenues due to geopolitical uncertainties and higher energy prices. Private Banking, Corporate & Retail Banking, and Wealth & Asset Management saw lower net incomes compared to Q2 2004.
- Winterthur and the insurance segments reported continued good progress towards profitability, with Life & Pensions and Non-Life seeing higher net incomes compared to the same period last year.
SEB provided a business update and summarized key financial details for the first half of 2008. Merchant Banking saw high business activity in trading and capital markets, corporate banking, and global transaction services. While income was up, costs also increased due to investments. Credit losses accelerated in Estonia and Latvia. SEB remains well capitalized with a strong liquidity position. The presentation concluded with an overview of priorities for various business divisions, including expanding the Nordic client base and energy sector coverage.
SEB has a strong competitive position as a long-term relationship bank in the Nordic region. The bank pursued a multi-disciplinary strategy in 2006 to stay ahead of market changes. Going forward, SEB believes structural trends around wealth management, demographics, and emerging markets remain valid opportunities despite regulatory uncertainty post-crisis. SEB is well positioned to leverage these trends through its existing franchises and relationships.
Teton Valley Recycling, Llc Financial PlanScot Acocks
This document contains a financial plan for Teton Valley Recycling (TVR) LLC. It outlines startup expenses totaling $12,950 which will be funded by $2,000 in cash and $11,500 in long-term liabilities. Sales are projected to grow from $55,800 in FY2010 to $111,598 in FY2011 to $223,196 in FY2012. Payroll is expected to increase from $14,106 in FY2010 to $39,308 in FY2011 to $86,544 in FY2012 as the business grows.
Lufthansa purchased $500 million worth of Boeing jets in 1985 payable in 1986. The head of treasury, Herr Ruhnau, was concerned about exchange rate risk as the dollar had been rising against the Deutschemark. He decided to hedge half the payment using forwards at the current exchange rate of DM3.2/$ and leave half unhedged. When payments were due in 1986, the dollar had weakened to DM2.3/$, exposing Lufthansa to a loss. Ruhnau was called before the board to explain his decision, though he argued the purchase was mandated and a mixed hedging approach reduced risk and cost compared to full hedging. The board ultimately did not
- The document discusses transaction exposure (TE), which is the risk from changes in exchange rates for contracts that have been agreed to but not yet settled.
- It describes various ways to manage TE, including through forward contracts, money market hedges, options, and swaps. It also discusses operational techniques like invoice currency choice and exposure netting.
- Examples are provided to illustrate comparing forward contracts to money market hedges for an exporter receiving foreign currency and an importer paying foreign currency. The more advantageous hedge depends on interest rate differences.
The document discusses various methods for measuring and managing foreign exchange exposure for multinational companies. It covers accounting exposure from currency translation, transaction exposure from future payments, and operating exposure from foreign revenues and costs. The document then examines alternative currency translation methods and Statement of Financial Accounting Standards No. 52. It also provides strategies for designing hedging programs to manage transaction and translation exposure through techniques like forward contracts, currency options, and exposure netting across currencies.
1) Operating exposure measures changes in a firm's present value from unexpected exchange rate changes that affect future operating cash flows over several years and impact competitive position.
2) Operating exposure is more important for long-term business health than transaction or accounting exposure and depends on subjective estimates of future cash flows.
3) Managing operating exposure is a total management responsibility as it depends on interactions between finance, marketing, purchasing, and production strategies.
Managing transaction exposure and economic exposureMaica Batiancela
This document discusses foreign exchange exposure and its management. It defines three types of exposure - translation, transaction, and economic - and describes techniques for managing each type. Transaction exposure involves actual cash flows and can be hedged using forwards, futures, options, swaps and cross-hedging. Economic exposure is harder to hedge but diversification and strategic operational changes can help. While derivatives are commonly used, some companies have experienced large losses, so effective risk management is important.
Foreign exchange exposure is the risk associated with activities involving currencies other than a firm's home currency. It is the risk that foreign currencies may fluctuate in a way that financially harms the firm. There are three main types of foreign exchange exposure: transaction, economic, and translation. Firms can assess and manage their exposures through hedging strategies like financial contracts and operational techniques. Whether to hedge depends on factors like a firm's currency forecasts and focus on its core business versus currency speculation.
This document discusses foreign exchange risk and its management. It defines foreign exchange risk as the risk of an investment's value changing due to currency fluctuations. It identifies the main types of foreign exchange risk as transaction risk, translation risk, and economic risk. Transaction risk arises from currency movements between the signing and execution of contracts. Translation risk occurs when consolidating financial statements in different currencies. Economic risk affects the long-term expected profits and wealth of a company due to currency changes. The document outlines various hedging strategies to manage these risks, including the use of forwards, futures, and money markets.
Interim report 3 2010, Investor presentation, Nordea BankNordea Bank
Nordea reported results for the third quarter of 2010. Net interest income was up 5% from the previous quarter due to strong customer activity and lending volumes. Fee and commission income remained high due to asset management performance. Expenses were down 2% excluding currency and initiative effects. Net loan losses continued to decrease and credit quality improved. Nordea expects macroeconomic recovery to continue through 2010.
The document discusses The Walt Disney Company's strategies for hedging currency exchange rate risk from royalties earned in Japanese yen. It considers options like currency forwards, futures, loans, and swaps. Disney ultimately chose a Eurocurrency bond issuance with an ECU/Yen currency swap, which provided the lowest interest rate of 7.01% and allowed Disney to take advantage of attractive foreign borrowing rates through additional swaps.
Institutional Cash Distributors (ICD) was formed in 2003 by three veteran institutional sales professionals from Deutsche Bank and JP Morgan Chase to provide investment services to corporate treasury clients. ICD services over $20 billion in investments for more than 200 institutional clients. ICD offers a one account solution that provides access to over 150 funds across 35 fund families through a single application, allows settling of multiple fund trades with one wire, and provides a consolidated statement. ICD acts as an independent provider and offers unbiased advice based on client guidelines.
Interim report 3 2010, Media and analyst presentation, Nordea BankNordea Bank
Nordea reported strong results for the third quarter of 2010. Net interest income was up 5% and net fee and commission income was up 20% compared to the third quarter of 2009. Total income reached a new record level, up 9% compared to the same period last year. Operating profit increased 15% year-over-year to 960 million euros. Nordea maintained a strong capital position, with a core tier 1 capital ratio of 10.4% and remains well positioned to comply with upcoming Basel III regulations.
The document summarizes Richard O'Brien's presentation at the 2012 Denver Gold Forum on September 11, 2012. It outlines Newmont Mining Corporation's strategy to achieve profitable growth through 6-7 million ounces of annual gold production by 2017 while maintaining disciplined returns. It also highlights Newmont's exploration potential of 90 million ounces of gold reserves and 9 billion pounds of copper reserves by 2020. Additionally, the summary discusses Newmont's strong balance sheet, investment grade credit ratings, and commitment to returning capital to shareholders through an industry-leading dividend now tied to the trailing average gold price.
Presentation Bo Lundgren Tokyo 7-8 maj 2012Riksgälden
Sweden experienced a banking crisis in the early 1990s but implemented reforms that stabilized its economy and reduced government debt. Reforms to monetary and fiscal policy, pensions, and deregulation of product markets created stability. Household debt is moderate and Sweden has a budget surplus target of 1% of GDP. The central bank focuses on price stability. Gross borrowing in capital markets is growing but net borrowing requirements are negative, indicating budget surpluses.
The document summarizes Swedish household savings data for the second quarter of 2010. It finds that total household savings increased by 46 billion kronor during the quarter due to 34 billion in new bank deposits and 14 billion in insurance savings. It also notes a 3.7% decrease in the Stockholm stock exchange index and a 3.3% increase in housing prices during the period. Household borrowing increased by 2.2% for the quarter and 8.4% over the past year.
Scania Interim Report January-September 2011Scania Group
Scania reported higher earnings for the first nine months of 2011 compared to the same period in 2010, with operating income rising to SEK 9,657m and earnings per share rising to SEK 9.11. However, demand for vehicles decelerated in late Q3, particularly in Southern Europe and the Middle East. As a result, Scania will reduce its daily global production rate by 10-15% starting in November to better match demand. Overall, net sales increased 16% to SEK 64,795m for the first nine months, with order bookings up 16% as well, though cash flow declined 54% over the same period.
1) The document outlines SEB Group's Q3 2008 results including highlights on asset quality, operations in the Baltics, and capitalization.
2) It shows that SEB had resilient underlying business performance in Q3 2008 but negative financial effects from the financial crisis.
3) The tables and charts present data on topics like income sources, credit exposure by sector and geography, property management portfolio, and asset quality for SEB and their key markets.
The document provides information about using a Pitchbook template for presentations. It describes characteristics of pitchbooks including dense layouts, simple graphics, and consistency across slides. It then provides instructions for customizing the template, including replacing the logo and modifying slide colors. Sample slides are shown for an annual report, market analysis, and business summary. The slides contain financial data, charts, and summaries.
The document is an exam paper for a Business Studies exam containing two case studies:
1. The Travelstop Hotel is facing cash flow problems and declining tourist numbers. It must decide whether to accept a large booking that may be slow to pay.
2. The Soup Makers produces three products at different stages of the product life cycle. It is developing a new product and has identified quality control issues. The case examines production, costs, and decisions around products.
- Credit Suisse Group reported net income of CHF 1,351 million for Q3 2004, down from CHF 1,457 million in Q2 2004. For the first nine months of 2004, net income was CHF 4,669 million.
- Most banking segments saw lower client activity and revenues due to geopolitical uncertainties and higher energy prices. Private Banking, Corporate & Retail Banking, and Wealth & Asset Management saw lower net incomes compared to Q2 2004.
- Winterthur and the insurance segments reported continued good progress towards profitability, with Life & Pensions and Non-Life seeing higher net incomes compared to the same period last year.
SEB provided a business update and summarized key financial details for the first half of 2008. Merchant Banking saw high business activity in trading and capital markets, corporate banking, and global transaction services. While income was up, costs also increased due to investments. Credit losses accelerated in Estonia and Latvia. SEB remains well capitalized with a strong liquidity position. The presentation concluded with an overview of priorities for various business divisions, including expanding the Nordic client base and energy sector coverage.
SEB has a strong competitive position as a long-term relationship bank in the Nordic region. The bank pursued a multi-disciplinary strategy in 2006 to stay ahead of market changes. Going forward, SEB believes structural trends around wealth management, demographics, and emerging markets remain valid opportunities despite regulatory uncertainty post-crisis. SEB is well positioned to leverage these trends through its existing franchises and relationships.
Teton Valley Recycling, Llc Financial PlanScot Acocks
This document contains a financial plan for Teton Valley Recycling (TVR) LLC. It outlines startup expenses totaling $12,950 which will be funded by $2,000 in cash and $11,500 in long-term liabilities. Sales are projected to grow from $55,800 in FY2010 to $111,598 in FY2011 to $223,196 in FY2012. Payroll is expected to increase from $14,106 in FY2010 to $39,308 in FY2011 to $86,544 in FY2012 as the business grows.
Lufthansa purchased $500 million worth of Boeing jets in 1985 payable in 1986. The head of treasury, Herr Ruhnau, was concerned about exchange rate risk as the dollar had been rising against the Deutschemark. He decided to hedge half the payment using forwards at the current exchange rate of DM3.2/$ and leave half unhedged. When payments were due in 1986, the dollar had weakened to DM2.3/$, exposing Lufthansa to a loss. Ruhnau was called before the board to explain his decision, though he argued the purchase was mandated and a mixed hedging approach reduced risk and cost compared to full hedging. The board ultimately did not
- The document discusses transaction exposure (TE), which is the risk from changes in exchange rates for contracts that have been agreed to but not yet settled.
- It describes various ways to manage TE, including through forward contracts, money market hedges, options, and swaps. It also discusses operational techniques like invoice currency choice and exposure netting.
- Examples are provided to illustrate comparing forward contracts to money market hedges for an exporter receiving foreign currency and an importer paying foreign currency. The more advantageous hedge depends on interest rate differences.
The document discusses various methods for measuring and managing foreign exchange exposure for multinational companies. It covers accounting exposure from currency translation, transaction exposure from future payments, and operating exposure from foreign revenues and costs. The document then examines alternative currency translation methods and Statement of Financial Accounting Standards No. 52. It also provides strategies for designing hedging programs to manage transaction and translation exposure through techniques like forward contracts, currency options, and exposure netting across currencies.
1) Operating exposure measures changes in a firm's present value from unexpected exchange rate changes that affect future operating cash flows over several years and impact competitive position.
2) Operating exposure is more important for long-term business health than transaction or accounting exposure and depends on subjective estimates of future cash flows.
3) Managing operating exposure is a total management responsibility as it depends on interactions between finance, marketing, purchasing, and production strategies.
Managing transaction exposure and economic exposureMaica Batiancela
This document discusses foreign exchange exposure and its management. It defines three types of exposure - translation, transaction, and economic - and describes techniques for managing each type. Transaction exposure involves actual cash flows and can be hedged using forwards, futures, options, swaps and cross-hedging. Economic exposure is harder to hedge but diversification and strategic operational changes can help. While derivatives are commonly used, some companies have experienced large losses, so effective risk management is important.
Foreign exchange exposure is the risk associated with activities involving currencies other than a firm's home currency. It is the risk that foreign currencies may fluctuate in a way that financially harms the firm. There are three main types of foreign exchange exposure: transaction, economic, and translation. Firms can assess and manage their exposures through hedging strategies like financial contracts and operational techniques. Whether to hedge depends on factors like a firm's currency forecasts and focus on its core business versus currency speculation.
This document discusses foreign exchange risk and its management. It defines foreign exchange risk as the risk of an investment's value changing due to currency fluctuations. It identifies the main types of foreign exchange risk as transaction risk, translation risk, and economic risk. Transaction risk arises from currency movements between the signing and execution of contracts. Translation risk occurs when consolidating financial statements in different currencies. Economic risk affects the long-term expected profits and wealth of a company due to currency changes. The document outlines various hedging strategies to manage these risks, including the use of forwards, futures, and money markets.
Interim report 3 2010, Investor presentation, Nordea BankNordea Bank
Nordea reported results for the third quarter of 2010. Net interest income was up 5% from the previous quarter due to strong customer activity and lending volumes. Fee and commission income remained high due to asset management performance. Expenses were down 2% excluding currency and initiative effects. Net loan losses continued to decrease and credit quality improved. Nordea expects macroeconomic recovery to continue through 2010.
The document discusses The Walt Disney Company's strategies for hedging currency exchange rate risk from royalties earned in Japanese yen. It considers options like currency forwards, futures, loans, and swaps. Disney ultimately chose a Eurocurrency bond issuance with an ECU/Yen currency swap, which provided the lowest interest rate of 7.01% and allowed Disney to take advantage of attractive foreign borrowing rates through additional swaps.
This document provides a corporate overview of WiLAN, a leader in intellectual property licensing. It summarizes WiLAN's business model of licensing its portfolio of over 3,000 patents as well as partner patents. It highlights WiLAN's financial success in recent years, including over $100 million in annual revenue and five consecutive years of positive cash flow. The document also previews WiLAN's litigation strategy and key court cases.
This document provides a corporate overview of WiLAN, a leader in intellectual property licensing. It summarizes WiLAN's business model of licensing its portfolio of over 3,000 patents as well as partner patents. It highlights WiLAN's licensing successes, revenue growth, positive earnings, strong balance sheet, and world-class team. The document also provides guidance for Q2 2012 and discusses WiLAN's key ongoing patent litigations.
This document provides a corporate overview of WiLAN, a leader in intellectual property licensing. It summarizes WiLAN's business model of licensing both owned and partner patents related to wireless technologies and digital displays. The document highlights WiLAN's licensing success, revenue growth, positive earnings, strong balance sheet, and Q1 2012 results. It also outlines WiLAN's large and growing patent portfolio within core programs and significant opportunities in licensing the substantial unlicensed global equipment market.
This document discusses corporate bond financing alternatives. It begins by providing an overview of the debt capital markets and notes that corporate bond issuance makes up 95% of the $3.5 trillion international market. It then examines various funding alternatives for corporations, including institutional bonds, retail bonds, and US private placements. For each option, it outlines the pros and cons as well as typical eligibility criteria. Overall, the document analyzes how corporate bonds can serve as alternatives to traditional bank financing.
- Price Group Inc. filed its quarterly report for the period ending March 31, 2009.
- Total revenues for Q1 2009 were $385.7 million, down from $560.4 million in Q1 2008, due to lower investment advisory fees from lower assets under management.
- Net income for Q1 2009 was $48.2 million, down from $151.5 million in Q1 2008, as a result of lower revenues and non-operating investment losses of $36 million.
- Assets under management totaled $268.8 billion on March 31, 2009, down from $378.9 billion on March 31, 2008, contributing to lower investment advisory fees.
The notional value of derivatives held by U.S. commercial banks increased $1.6 trillion in the first quarter of 2009 to $202 trillion. U.S. commercial banks generated record trading revenues of $9.8 billion in the first quarter, compared to a $9.2 billion loss in the previous quarter. Net current credit exposure decreased 13% to $695 billion. Derivative contracts remain concentrated in interest rate products, which make up 84% of total derivative notional values.
Bank Vozrozhdenie has over 20 years of history in Russia and a management team that has largely been with the bank for over 15 years. It is ranked among the top 30 banks in Russia by assets and focuses on lending to small and medium enterprises, consumers, mortgages, and banking cards. The bank has a network of 149 branches across 21 Russian regions and over 800 ATMs. Its main shareholders include its Chairman and Board members who collectively own over half of the bank.
The document provides an overview of key corporate financial disclosure documents including the directors' report, auditor's report, profit and loss statement, balance sheet, and cash-flow statement. It discusses the importance of these documents for understanding a company's financial performance and position. The profit and loss statement is described as a roadmap from revenue to net profit, and the balance sheet provides a snapshot of a company's assets and liabilities. Footnotes and definitions of common financial ratios are also provided.
This document provides information about bond markets. It defines key terms like international bonds, domestic bonds, Eurobonds, and foreign bonds. It discusses the different types of international bonds and how they are classified. It also outlines the common process for issuing bonds and describes some of the main instruments and risks associated with international bond markets. Various data on outstanding bond amounts by major instruments, issuers, currencies is presented. The advantages and disadvantages of international bonds for both companies and investors are summarized.
This document provides an overview of Keller Williams' performance and growth from 2008-2009. It highlights that Keller Williams was ranked #1 among major real estate franchises in several surveys. While overall home sales declined in 2009, Keller Williams increased its number of agents by 26% and closed units increased by 1% compared to a 7% decrease nationally. The document outlines Keller Williams' continued focus on agent profit sharing and culture.
This document provides an overview of Keller Williams' performance and growth from 2008-2009. It highlights that Keller Williams was ranked #1 among major real estate franchises in several surveys. While overall home sales declined in 2009, Keller Williams increased its number of agents by 26% and closed units increased by 1% compared to a 7% decrease nationally. The document outlines Keller Williams' continued focus on business tools, education, and culture to support its agents and drive future growth.
This document provides an overview of Keller Williams' performance and growth from 2008-2009. It highlights that Keller Williams was ranked #1 among major real estate franchises in several surveys. While overall home sales declined in 2009, Keller Williams increased its number of agents by 26% and closed units increased by 1% compared to a 7% decrease nationally. The document outlines Keller Williams' continued focus on business tools, education, and culture to support its agents and drive future growth.
Grand Lake OK 2008 to 2012 Full Year Real Estate Market AnalysisRE/MAX Grand Lake
Looking at the last five years, we had our second best overall sales at $155 million, best Residential water front homes at $70 million, and best Luxury Home sales ($500,000 or more) at $32 million. Also surprisingly good were water front lots and farm & ranch sales. Almost every category I track was up double digit percentages.
1) Credit Suisse is presenting at its 2008 Annual Technology Conference and provides a safe harbor statement regarding forward-looking statements in the presentation.
2) Arrow Electronics touches all geographies, technologies, and end markets, connecting key players in unique and value-enhancing ways. It aims to grow faster than the market through operational excellence and financial stability.
3) Arrow is well positioned to weather an economic downturn due to changes made since the last tech sector downturn, including a stronger balance sheet with lower debt and higher liquidity than 10 years ago.
This corporate presentation from IMPACT Silver Corp outlines their profitable silver production in Mexico, strong financial position with $19.6M cash and no debt, and growth plans. IMPACT is currently transitioning operations from older, lower grade mines to new high grade Capire Mine and Processing Plant, with completion scheduled for Q1 2013. They have explored over 3,000 old mine workings in the Royal Mines of Zacualpan district, Mexico, which has 485 years of mining history, to guide modern exploration efforts.
BRProperties reported strong financial results in 2010, with gross revenues increasing 78% compared to 2009, reaching R$223.4 million. Adjusted EBITDA was R$177.5 million, an increase of 89% over 2009. Net income increased 388% to R$813.4 million. The company invested over R$2 billion in acquisitions during 2010, exceeding its target. The portfolio was appraised at R$4.78 billion, a 22% increase in market value year-over-year.
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3. 2011
2008
Charter Capital
100 Billion VND
2003 HCMC’s Stock
Scope of business
Exchange
1. Import - export trade
Equitizied 2. Local product trade
Construction and 3. Construction
1976 Materials Trading Joint 4. Investment
Stock Company 5. Material production
Established
Name: Transport Materials
Supply Enterprise
3
4. 60
Billions VND
50
40
30
20
loans interest expenses
10 foreign exchange loss
0
2006 2007 2008 2009 2010
Net operating profit
Profit in business concerns and joint venture
4 Other profit
5. 3,500
Billion VND
Construction
3,000
2,500 Real estate
Trading
2,000
Service provision
1,500
1,000 Finished product
500
Import Import Import Merchandises
0
2008 2009 2010
5
8. Sign import Borrow US dollar Sign domestic Receive VN dong.
contract. Settle the payment Sale contract. Pay off the loan.
30-45 days
VND Account receivable
USD Account payable USD Account payable
with seller with bank
Short cash
Cash paid Cash paid
to seller to bank.
Operating cycle
8
9. Sign import Borrow US dollar Sign domestic Receive VN dong.
contract. Settle the payment Sale contract. Pay off the loan.
USD Account payable
Signing exchange rate Paying exchange rate
USD Account payable USD Account payable
The transaction exposure gain/loss
Original VND Account payable Actual VND account payable
Estimated the selling price
9
10. Number of Total Import Transaction
Year
Contracts value (USD) Exposures (VND)
2006 2 1,029,600 8,244,000
2007 2 1,779,300 -166,818,300
2008 3 2,295,500 -1,501,592,500
2009 3 2,713,000 -1,091,423,500
2010 3 2,584,000 -1,350,875,000
The trading band increased up to 5%
The average interbank exchange rate increased up to 2 times every year.
10
11. Sign import Borrow US dollar Sign Sale Receive VN dong.
contract. Settle the payment contract. Pay off the loan.
Price Lock the selling price
decision
Operating cycle Paying rate
Invoicingrate
Signing rate
Import proposal
11
13. Import Transaction Transaction
Number of
Year Value Exposures Exposures after
Contracts
(USD) (VND) hedging (VND)
2006 2 1,029,600 8,244,000 109,231,200
2007 2 1,779,300 -166,818,300 30,478,800
2008 3 2,295,500 -1,501,592,500 -694,439,000
2009 3 2,713,000 -1,091,423,500 -621,860,500
2010 3 2,584,000 -1,350,875,000 -725,330,000
13
14. Sign import Borrow US dollar Sign Sale Receive VN dong.
contract. Settle the payment contract. Pay off the loan.
Lead the Lead the Lead the
payment payment payment
Price Borrow Sign Forward /
decision VND Option contracts
Risk Sharing
14
15. Sign import Borrow US dollar Sign Sale Receive VN dong.
contract. Settle the payment contract. Pay off the loan.
Lead the Lead the Lead the
payment payment payment
Signing rate Transaction Risk Paying rate
Methods to shorten the period of outstanding payables
Push up the process of finding domestic buyers
Conduct some incentives to encourage the buyers to
settle the receivable payment early.
15
16. Sign import Borrow US dollar Sign Sale Receive VN dong.
contract. Settle the payment contract. Pay off the loan.
Lead the Lead the Lead the
payment payment payment
Price Borrow Sign Forward /
decision VND Option contracts Transaction term
Risk Sharing
USD account payable VND account payable
16
17. Sign import Borrow US dollar Sign Sale Receive VN dong.
contract. Settle the payment contract. Pay off the loan.
Risk Sharing
When signing sale contract with domestic buyers, the sale
employee can add an additional condition under a form of a
price adjustment clause.
Neutral Zone
Risk sharing Risk sharing
Paying rate
17
18. To help the company avoid unnecessary cost.
To help the company avoid conflicts with share holders.
To provide guidance to managers.
Type and
degree of Strategy Pros and Hedging Implement- Measure-
Decision
the exposure objectives Cons tools ation ment
18
19. Type and
degree of
the exposure
Transaction exposure
The company does not have inflow USD from export activities.
During the economic crisis, most of the steel beam import
contracts have suffered from transaction exposures.
19
20. Type and
degree of
Decision
the exposure
Reasons for hedging
To improve the budgeting and planning capability.
To reduce the likelihood that the real profit of an import contract
will below a necessary minimum.
To avoid negative effects of external shocks.
20
21. Type and
degree of Strategy
Decision
the exposure objectives
Short-term: To minimize transaction exposure.
Long-term: To avoid large foreign exchange losses.
21
22. Type and
degree of Strategy Pros and Hedging
Decision
the exposure objectives Cons tools
Long -term Short-term (Economic crisis)
Lead strategy Price decision
Price decision Risk Sharing
Risk Sharing Forward contract
22
23. Type and
degree of Strategy Pros and Hedging Implement-
Decision
the exposure objectives Cons tools ation
Considerations when implementing the hedging tools.
To clarify the responsibilities.
To set up the criteria for performance appraisals.
To monitor the foreign exchange fluctuations.
23
24. Type and
degree of Strategy Pros and Hedging Implement- Measure-
Decision
the exposure objectives Cons tools ation ment
Establish measurement for the hedging strategy
Compare cost and profit of its import activities with some
companies in the same industry
Compare the profit of import contracts without hedging
with the profit of contracts after hedging.
24
25. • Price decision
• Risk sharing
Short-
term • Forward contract
• Lead strategy
• Price decision
Long-term • Risk sharing
Type and degree of the exposure Decision Strategy objectives
Hedging
strategy Measurement Implementation Hedging tools Pros and Cons
25
28. Foreign Exchange Exposure
Translation
Economic exposure exposure
Transaction
exposure
Operating
exposure
“Transaction exposure refers to potential changes in the value of
contractual future cash flows, or monetary assets and
liabilites, resulting from changes in the exchange rate.”
(Alan C.Shapiro, 2005)
28
29. A. Cost of good sold (USD) 780 780
Input price CFR HP 630.00 630.00
Insurance premium 0.07% 0.44 0.44
CIF price 630.44 630.44
Import tax: 10% 63.04 63.04
VAT of Import 69.35 69.35
LC fee 1.90 1.90
Estimated interest 5.11 5.11
Direct fee 10.00 10.00
Estimated cost of input
Signing rate: 18,479VND/USD 14,410,666.73 14,664,000.00
B. Total value of output (VND) 14,839,000.00 14,839,000.00
Estimated selling price (Without VAT) 13,490,000.00 13,490,000.00
C. Profit (B-A) (VND) 428,333.27 175,000.00
VAT: 38,939.39 15.909.090
Profit per unit 389,393.89 159,090.91
Total profit: 600MT 233,636,331.80 95,454,545.45
29 Estimated rate of return: 2.89% 1.18%
32. Commodity H400 H400
Price decisions
A. Cost of input (USD) 780 780
Input price CNF HP 630.00 630.00
Insurance premium 0.07% 0.44 0.44
CIF price 630.44 630.44
Import tax: 10% 63.04 63.04
VAT of Import 69.35 69.35
LC fee 1.90 1.90
Interest 5.11 5.11
Direct fee 10.00 10.00
Signing exchange rate: 18,479VND/USD 14,410,666.73
Invoicing exchange rate: 18,700VND/USD 14,583,011.41
B. Total value of output 14,839,000.00 15,015,000.00
Selling price (Without VAT) (VND) 13,490,000.00 13,650,000.00
C. Profit (B-A) 428,333.27 431,988.59
VAT: (B-A)/1.1 x 10% 38,939.39 39,271.69
Profit per unit (B-A)/1.1 389,393.89 392,716.90
Total profit: 600MT 233,636,331.80 235,630,142.58
32 Estimated rate of return (VND) 2.89% 2.88%
33. Sign import Borrow US dollar Sign Sale Receive VN dong.
contract. Settle the payment contract. Pay off the loan.
Signing rate: 18,479VND/USD Selling price: Paying rate
Import price : 630USD/MT 13,490,000VND/MT 19,080VND/USD
+190VND/USD x 630USD
~138,700VND/MT
380VND/USD
Neutral Zone
18,200 18,700
19,080
33
34. To help the company avoid unnecessary cost.
To decide whether a hedging strategy is necessary or not.
To decide which is the right hedging technique.
To help the company avoid conflicts with shareholders.
To clarify clearly the necessities of a hedging strategy.
To help the shareholders evaluate and understand the
effectiveness of the strategy.
To provide guidance to managers.
What should the managers do if the company is facing
transaction exposures?
In which cases a hedging strategy is necessary?
How to establish, implement and measure the strategy?
34
35. To improve the budgeting and planning capability.
To reduce the risk in future cash flow.
To control the current and future cost of import
To control the real profit of an import contract.
To minimizes the sensitivities of estimated profit with foreign
exchange fluctuation.
To avoid negative effects of external shocks.
Economic crisis is unavoidable
To deal with major shocks from the environment quickly
and effectively.
35
36. The managers do not want to take on responsibilities.
Shareholders do not understand the necessity of a hedging
strategy.
The company does not pay attention to risk management.
Some hedging tools are costly, unpopular and hard to
implement.
36
37. Allowable Variations around Official Exchange Rate Mar 1989 - Mar 2011
To continous using price decisions technique.
To apply lead strategy into the whole process of Steel trading.
To began using risk sharing in some contracts with familiar
buyers.
37
38. 1.Hedging tools can also be used for locking the profit.
2.Hedging enables traders to survive hard market periods.
3.Successful hedging gives the trader protection against currency
exchange rate changes
4.Hedging can also save time as the long-term trader is not
required to monitor/adjust his portfolio with daily market volatility.
38
39. 1.Hedging involves cost that can erodethe profit.
2.Risk and reward are often proportional to one other; thus
reducing risk means reducing profits.
3.For most short-term traders, hedging is a difficult strategy to
follow.
4.If the market is performing well or moving sideways, then
hedging offer little benefits.
5.Hedging is a precise trading strategy and successful hedging
requires good trading skills and experience.
39
40. Hedging techniques Costs
Tighten creadit (Lead Lost sale and profits
Strategy)
Borrow locally Higher interest rate
Risk Sharing Lost sale contracts.
Price decision High selling price, Lost sale contracts.
Forward contract Rate difference between a spot foreign exchange rate
and foreign exchange rate in forward contract
Option contract Rate difference between a spot foreign exchange rate
and (exercising rate plus the option premium).
40
41. Unit price Total value
Commodity: Hot rool steel
USD/MT USD/9000MT
I. Cost of good sold 8,264,182.30
Import price (CFR) 854.33 7,689,000.00
Insurance premium 0.07% 0.07% 5,382.30
LC fee 1,000.00
Direct fee 2.2 19,800.00
Processing cost 61 549,000.00
Total cost 8,264,182.30
II.Selling price (without VAT) 1020 9,180,000.00
III.Profit 915,817.70
IV.Revoked waste materials 18 162,000.00
V. Cost
Interest rate 26 234,000.00
Administrative costs 11,250.00
Depreciation 25 225,000.00
41 VI. Real Profit 607,567.70